US snack maker Lance today (22 July) booked higher second-quarter profits on the back of lower costs and higher sales of branded products.
The company, which also today announced plans to merge with rival snack maker Snyder’s of Hanover, posted net income of $12.8m, against $9.8m a year earlier.
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The increase in second-quarter profits came after Lance said in May that its net income had tumbled during the first three months of the year, which then forced the company to slash its earnings forecast for 2010.
Lance had set a revised earnings target of $1.10 to $1.25 per diluted share; today, the company narrowed that forecast to $1.15 to $1.25.
“Throughout the remainder of this year, we will remain focused on profitably growing our total business, while moving forward to finalise the recently announced merger with Snyder’s of Hanover,” said Lance president and CEO David Singer.
Lance posted second-quarter net revenue of $235.4m, against $236.4m a year ago.
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By GlobalDataThe company said revenue from branded products had risen 1% during the quarter after “exceptionally strong” in sales a year earlier.
Over the first six months of 2010, Lance earned $15.6m compared to a profit of $16m in a year earlier.
The fall in profits came despite a 1% increase in net revenue to $457m.
Lance reaffirmed its previously announced full-year net revenue forecast of $930m to $950m.
